[Weekly Compilation of Presidential Documents Volume 42, Number 1 (Monday, January 9, 2006)]
[Pages 1-2]
[Online from the Government Publishing Office, www.gpo.gov]

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The President's Radio Address

December 31, 2005

    Good morning. Two thousand five has been a year of strong progress 
toward a freer, more peaceful world and a more prosperous America. This 
year we watched the Iraqi people defy the terrorists and suicide bombers 
and hold three successful elections, voting to choose the only 
constitutional, democratic government in the Arab world. We also saw the 
people of Afghanistan elect a democratic Parliament in a nation that 
only a few years ago was ruled by the Taliban.
    These are amazing achievements in the history of liberty. As freedom 
and democracy take hold in a troubled region, we are making the American 
people safer here at home and laying the foundation of peace for future 
generations.
    The United States has a vital interest in the success of a free 
Iraq, so in the year ahead, we will continue to pursue the comprehensive 
strategy for victory that I have discussed with you in recent weeks. 
This strategy has security, political, and economic elements. First, our 
coalition is staying on the offense, finding and clearing the enemy out 
of Iraqi cities, towns, and villages, transferring more control to Iraqi 
units, and building up the Iraqi security forces so they can 
increasingly lead the fight to secure their country. Second, we are 
helping Iraqis build the political institutions of an inclusive, 
unified, and lasting democracy. And third, our coalition is overcoming 
earlier setbacks and moving forward with a reconstruction plan to 
rebuild Iraq's economy and infrastructure. As we help Iraq build a 
peaceful and stable democracy, the United States will gain an ally in 
the war on terror, inspire reformers across the Middle East, and make 
the American people more secure.
    During 2005, thanks to our tax relief, spending restraint, and the 
hard work of the American people, our economy remained the envy of the 
world. Our economy has been growing strongly for more than 2 years, and 
has added nearly 4\1/2\ million jobs since May of 2003. More Americans 
own their homes than at any time in our Nation's history. Inflation is 
low. Productivity is high, and small businesses are flourishing. Real 
disposable income is up. Consumers are confident, and early reports 
suggest good retail sales this holiday season.

    To keep our economy moving forward, we must continue to pursue sound 
policies in Washington and be wise with taxpayers' money. We made real 
progress this year in restraining Government spending. Last February, I 
submitted to Congress the most disciplined budget proposal since Ronald 
Reagan was President. Working with the Congress, we ended or reduced 
about 90 lower priority or poorly performing Government programs, cut 
nonsecurity discretionary spending, and kept overall discretionary 
spending growth below the rate of inflation. We have now cut the rate of 
growth in nonsecurity discretionary spending each year I have been in 
office.

    Before their holiday recess, both the House and the Senate also 
voted to cut mandatory spending by nearly $40 billion. This will be the 
first reduction of entitlement spending in nearly a decade. By being 
responsible with the taxpayers' money, we are funding our Nation's 
priorities, while staying on track to cut the deficit in half by 2009.

    In the new year, we must also make permanent the tax relief that has 
kept our economy growing. We will work to expand free and fair trade, so 
America's farmers, workers, and businesses can enjoy the opportunities 
the global economy offers. We'll build on the progress we've made with 
this year's energy bill, so our Nation will be less dependent on foreign 
sources of energy. We will continue to promote an ownership society in 
which

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people have more control over their retirement and health care. We'll 
continue to improve education and job training programs, so our citizens 
have the skills necessary to compete and succeed in the 21st century. 
And we will show the compassionate heart of our Nation and provide the 
people of the gulf coast the help they need to rebuild after Hurricanes 
Katrina and Rita.
    In 2005, America grew in prosperity, advanced the cause of freedom 
and peace, and enhanced our security. Our duties continue in the new 
year, and I'm confident that our Nation will meet the challenges that 
lie ahead.
    Thank you for listening, and happy New Year.

Note: The address was recorded at 7:52 a.m. on December 30 in the 
Cabinet Room at the White House for broadcast at 10:06 a.m. on December 
31. The transcript was made available by the Office of the Press 
Secretary on December 30 but was embargoed for release until the 
broadcast. The Office of the Press Secretary also released a Spanish 
language transcript of this address.